Halliburton (HAL) Stock Forecast & Price Target

Halliburton, as North America's largest oilfield-services company, maintains a leading position in the hydraulic fracturing and completions market, contributing nearly half of its revenue, along with strong offerings in drilling and completions fluids. The company's revenue in the Completion and Production (C&P) segment has shown a quarter-over-quarter increase, achieving the highest margins of the year despite low U.S. fracturing activity, demonstrating resilience and operational efficiency. Furthermore, Halliburton is projected to generate $1.8 billion in free cash flow (FCF) by 2026, reflecting a 6% year-over-year growth, bolstered by factors such as potential increases in commodity prices, stronger service pricing, and improved utilization rates.

Halliburton's financial outlook is characterized by a projected revenue decrease of 3% year-over-year, reflecting more significant declines in North America and a modestly flat international performance. The company's guidance for 1Q26 indicates a potential revenue drop of 6% quarter-over-quarter, coupled with a concerning expected decline in operating margins by 300 basis points, signaling pressure on profitability. Additionally, increasing corporate expenses, alongside negative impacts from tariffs and higher net interest expenses, contribute to an unfavorable financial landscape that may hinder Halliburton's ability to absorb fixed costs effectively.